10 percent of online stores to go bankrupt in 2009Publish date: 26-08-2008
More than 10 percent of Romanian online stores are to exit the market next year, as entrepreneurs lack strategies. Main players on this segment say online stores require more time to become profitable, compared to classic stores.
"Most entrepreneurs believe that online businesses require smaller investments. I think that more than 10 percent of the local online stores will exit the market, given some 5-7 percent of them have already gone bankrupt," the President of Fit Distribution, Marius Ghenea, told Business Standard. Fit Distribution administers the PcFun and ElectroFun online stores.
Mugur Frunzetti, the General Manager of the Grifon Group, administrator of MarketOnline.ro is more pessimistic, as he estimates some 10-15 percent of online store will close.
Consulting company Roland Berger Strategy Consultants Romania's Managing Partner, Codrut Pascu, said a boom was registered on the online trade market, which is to be followed by a period of consolidation. "In order to resist on a market whose barriers are minor, one must either be the first to come up with a concept, make significant investments in marketing and advertising to become a brand, or have a sustainable competitive edge," Pascu said.
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